Company Number: 13126694

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: LOW
   The company demonstrates a solid liquidity position, increasing net current assets and shareholders’ funds year on year. There are no overdue filings, and the company is actively trading with a stable director and no indications of insolvency.

2. Key Concerns:

• Taxation and social security creditors increased substantially to £109,358 as of 31 March 2024, which could suggest timing issues in tax payments or accruals requiring further clarification.
• Trade debtors, while growing, remain modest and should be monitored for collectability to avoid cash flow strain.
• The company operates with minimal fixed assets and a small workforce (average 2 employees), which may limit operational scalability and resilience.

3. Positive Indicators:

• Strong cash reserves (£200k+) relative to current liabilities, supporting good short-term liquidity.
• Consistent growth in net current assets and shareholders’ funds over the last three years, implying profitability and retained earnings accumulation.
• Up-to-date statutory compliance with no overdue accounts or confirmation statements, reflecting sound governance practices.

4. Due Diligence Notes:

• Review the nature and timing of the tax and social security creditor balance to assess any potential risks or liabilities.
• Confirm the quality and aging of trade receivables to evaluate cash collection risk.
• Examine business model sustainability and client concentration given the small scale of operations and limited employee base.
• Verify the director’s capacity and experience managing the business, given the company’s small size and growth trajectory.
• Consider reviewing any related party transactions or loans as none are disclosed but may exist given the small scale.